{"operation":"document","citation":"CPF 120200003W","title":"LOUISVILLE GAS & ELECTRIC CO — Warning Letter","source_type":"enforcement","agency":"Pipeline and Hazardous Materials Safety Administration","status":"historical","official":true,"published_on":"2020-03-27","effective_on":null,"summary":"CLOSED warning letter citing 192.12(d).","machine_formats":{"json":"https://regulus.evalyn.ai/document/phmsa-enforcement-120200003w.json","markdown":"https://regulus.evalyn.ai/document/phmsa-enforcement-120200003w.md"},"app_url":"https://regulus.evalyn.ai/document/phmsa-enforcement-120200003w","source_url":"https://primis.phmsa.dot.gov/enforcement-data/case/120200003W","body":"Warning Letter involving LOUISVILLE GAS & ELECTRIC CO. PHMSA's enforcement data identifies the cited regulation as 192.12(d). The case was opened on 2020-03-27 and is reported as closed as of 2020-03-27. Open the official case record for notices, responses, orders, and the latest status.\n\nOfficial case documents:\n\n120200003W_Warning Letter_03272020.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200003W/120200003W_Warning%20Letter_03272020.pdf\n\n120200003W_Warning Letter_03272020_text.pdf: https://primis.phmsa.dot.gov/enforcement-documents/120200003W/120200003W_Warning%20Letter_03272020_text.pdf\n\n120200003W_Warning Letter_03272020_text.pdf\n\nWARNING LETTER\nOVERNIGHT EXPRESS DELIVERY\nMarch 27, 2020\nMr. John Malloy\nVice President, Gas Distribution\nLouisville Gas & Electric Co.\n220 W. Main St.\nP.O. Box 32010\nLouisville, KY 40202\nCPF 1-2020-0003W\nDear Mr. Malloy:\nDuring the week of August 6-9, 2019, representatives of the Pipeline and Hazardous Materials Safety\nAdministration (PHMSA) pursuant to Chapter 601 of 49 United States Code (U.S.C.), inspected\nLouisville Gas & Electric Co.’s (LG&E) underground natural gas storage field records for the Doe\nRun and Muldraugh storage fields in Meade County, Kentucky.\nAs a result of the inspection, it is alleged that LG&E has committed a probable violation of the\nPipeline Safety Regulations, Title 49, Code of Federal Regulations (CFR). The item inspected and\nthe probable violation is:\n1. § 192.12 Underground natural gas storage facilities.\n(a) …\n(d) Each underground natural gas storage facility that uses a depleted\nhydrocarbon reservoir or an aquifer reservoir for gas storage, including\nthose constructed not later than July 18, 2017 must meet the operations,\nmaintenance, integrity demonstration and verification, monitoring, threat\nand hazard identification, assessment, remediation, site security,\nemergency response and preparedness, and recordkeeping requirements\n\n\n\nCPF 1-2020-0003W\nand recommendations of API RP 1171, sections 8, 9, 10, and 11\n(incorporated by reference, see §192.7) by January 18, 2018.1\nLG&E failed to meet the applicable requirements and recommendations of API RP 1171, Section\n9. Specifically, LG&E’s records did not demonstrate that valves were maintained, repaired, or\nreplaced in accordance with LG&E’s valve maintenance program, as required by Section 9.3.2.\nSection 9.3.2 states in part:\nThe valves shall be maintained, repaired, or replaced in accordance with the\noperator’s valve maintenance program for isolation valves.\nLG&E’s valve maintenance and inspection program prescribes valve maintenance to be performed\nonce a year, not to exceed 15 months. During the inspection, LG&E’s valve maintenance records\nwere reviewed. The records failed to demonstrate that valve maintenance was performed during 2018\nfor the Jackson, I. #2 wellhead assembly at Doe Run Storage Field and for the Sills, A. #2 wellhead\nassembly at Muldraugh Storage Field.\nTherefore, LG&E failed to follow its valve maintenance program for isolation valves in accordance\nwith Section 9.3.2.\nUnder 49 U.S.C. § 60122 and 49 CFR § 190.223, you are subject to a civil penalty not to exceed\n$218,647 per violation per day the violation persists, up to a maximum of $2,186,465 for a related\nseries of violations. For violation occurring on or after November 27, 2018 and before July 31, 2019,\nthe maximum penalty may not exceed $213,268 per violation per day, with a maximum penalty not\nto exceed $2,132,679. For violation occurring on or after November 2, 2015 and before November\n27, 2018, the maximum penalty may not exceed $209,002 per violation per day, with a maximum\npenalty not to exceed $2,090,022. For violations occurring prior to November 2, 2015, the maximum\npenalty may not exceed $200,000 per violation per day, with a maximum penalty not to exceed\n$2,000,000 for a related series of violations. We have reviewed the circumstances and supporting\ndocuments involved in this case, and have decided not to conduct additional enforcement action or\npenalty assessment proceedings at this time. We advise you to correct the item identified in this letter.\nFailure to do so will result in LG&E being subject to additional enforcement action.\nBe advised that all material you submit in response to this enforcement action is subject to being made\npublicly available. If you believe that any portion of your responsive material qualifies for\nconfidential treatment under 5 U.S.C. 552(b), along with the complete original document you must\nprovide a second copy of the document with the portions you believe qualify for confidential\ntreatment redacted and an explanation of why you believe the redacted information qualifies for\nconfidential treatment under 5 U.S.C. 552(b).\nNo reply to this letter is required. If you choose to reply, please submit all correspondence in this\nmatter to Robert Burrough, Director, PHMSA Eastern Region, 840 Bear Tavern Road, Suite 300,\nWest Trenton, NJ 08628. Please refer to CPF 1-2020-0003W on each document you submit, and\n1 The final rule, Pipeline Safety: Safety of Underground Natural Gas Storage Facilities, 85 FR 8104 (February 12,\n2020), revised § 192.12. The requirement cited in this Warning Letter is still present but is now codified in\n§ 192.12(b)(2).\n120200003W_Warning Letter_03272020_text Page 2 of 3\n\n\n\nCPF 1-2020-0003W\nwhenever possible provide a signed PDF copy in electronic format. Smaller files may be emailed to\nrobert.burrough@dot.gov. Larger files should be sent on USB flash drive accompanied by the original\npaper copy to the Eastern Region Office.\nSincerely,\nRobert Burrough\nDirector, Eastern Region\nPipeline and Hazardous Materials Safety Administration\n120200003W_Warning Letter_03272020_text Page 3 of 3","truncated":false,"body_characters":5743}